FinTech is not only an enabler but a driving engine – Pierre Gramegna
The global pandemic triggered by the COVID-19 virus has sparked the growth of online payments in the present era. The global community of consumers has embraced digital payments, thus compelling various banks, financial institutes and top tech firms to enter the ecosystem of digital payments. Going by a recent study released by JP Morgan, about 54% of the customers revealed that they make use of online banking tools more extensively in the age of pandemic than they ever did in the previous year.
Among all the sectors, digital payments gained traction in the world at large. It is expected that the market of digital payments is going to reach a huge milestone of $10.5 trillion. Read on to know more about the captivating trends that have emerged in the payments sector since the pandemic. The growth of the e-commerce market, digital payments and credit cards have been way too captivating. Let’s plunge into these trends now!
#1: Growth Of E-Commerce Market
E-commerce growth has reached a skyrocketing height, and retail e-commerce sales have picked up pace in today’s age. In 2020, the net volume of online sales in the retail market had reached a peak of $794.50 billion in the US. The ushering of the global pandemic forced even small business stores to showcase and sell their products in online mode. A large number of businesses started to bring up their e-commerce presence.
It was observed that a large section of the consumers belonging to older ages turned towards the e-commerce market at a further intensive rate. After all, they were furthermore apprehensive of the viral infection as compared to the younger generation. Interestingly enough, the youngsters already tended to go for e-commerce marketing.
With the advent of pandemics, people belonging to the higher part of the age spectrum also turned to online payments. No wonder that’s been the reason behind the unprecedented growth in the execution of online payments at the times of online shopping!
#2: Emergence Of Online Payment APIs
The modern era is the novel era of payment APIs! Wondering why? Well, with the escalation in the completion rates of online payments as the digital payments ecosystem receives great traffic, several Fintech-based startups have come up with highly innovative solutions to make online payments for various banks and business firms an easy peasy task.
The mass adoption of online payments among consumers has sparked the growth of a large number of payment APIs. Not quite got it? Well, a payment API is an application programming interface that is concerned with simplifying online payment management for various e-commerce businesses.
In this context, we can’t help but mention an excellent Fintech company that is offering a powerful payment solution with single API integration. Curious to know what that is? Well, it is Payomatix! Managing online transactions and payment records of your business has now been made easier with the advent of strong payment APIs as that offered by Payomatix.
APIs have taken the world of digital payments by storm. And, it is not at all difficult to see why these are being used fervently by various merchants and business firms. Truly, the pandemic has given a major push to the rate online transactions are made all over the world. We have been ushered into the world of digital payments, it seems, and it is indeed a good development, you see.
#3: Shift of Offline Businesses To The Online Mode
With an array of lockdown regulations being imposed in several countries all over the world, consumer dependency on online markets grew manifold. To generate a great percentage of sales, offline businesses made a move toward the online mode. Loads of offline business enterprises started investing in establishing an online presence and boosting their revenue generation in the e-commerce market.
Haven’t you come across offline stores transitioning to the online ones as they create their own digitised store, equip themselves with online catalogues and start offering their services countrywide? Yes, there were many! Digital payments seem to be the immediate factor behind the evolution of various small and medium-sized offline businesses switching to the digitalised mode. It will be interesting to see how online payment transactions double themselves in volume, in the coming days.
#4:Emergence Of BNPL Payment Model
The BNPL or Buy-Now-Pay-Later model received immense popularity in the age of pandemic when the global population were put in a tight spot as they found it difficult to spare their bucks quite freely for obvious reasons of the financial crisis. To meet the needs of the consumers for a hassle-free, smooth payment channel, several businesses and companies are now moving towards incorporating the BNPL payment system in their company infrastructure.
Global payment giants such as Visa, PayPal, and Mastercard have also taken action towards making the BNPL facility functional for its global community of consumers. With every passing day, the payments industry is witnessing mammoth changes, and the emergence of this new model is a novel one. It is good to see how technology is revolutionising the online payments ecosystem. What do you say? Moving towards a consumer-friendly business world is quite a spectacular feat, isn’t it?
#5: Evolution Of Mobile Payments & Digital Wallets
The COVID-19 virus made people go completely contactless as they chose e-commerce and digital wallet payments via their devices such as smartphones, laptops, tablets, etc. Cash transactions received a major blow, as consumers grew increasingly fond of online payments because of their high security, both in terms of financial and health reasons.
By 2025, it is expected that users of digital wallets are going to reach a peak of 4.4 billion all over the world.
Though the risks of cyberattacks can not be ruled out, mobile payments via digitised payment gateways are simplifying the way global consumers always cherished making monetary transactions. And, the net volume of mobile payments and digital wallet-based transactions are just going to explode in a few years!
Technology has truly revolutionised the payments ecosystem, and that too, for the better. As consumers start adopting the hassle-free mode of digitalised payments, we can only expect the Fintech startups and payment APIs to grow at an unprecedentedly huge rate. This is going to be really awesome! So, let’s wait and see how this space continues to receive alarming trends and transform the picture of the Fintech market.